How to Start a Petroleum Trading Company in Dubai

Dubai is a major trading and logistics centre for fuel, lubricants and other energy products. But petroleum trading is more regulated than ordinary import-export activity. You cannot simply obtain a general trading licence, rent an office and start buying diesel or lubricants.

If your company will import, buy, sell, distribute, store, market or transport regulated petroleum products in Dubai, you need the correct commercial activity plus the permits that apply to the product and operation.

Dubai’s current framework is largely set by Executive Council Resolution No. 85 of 2025, with the Dubai Supreme Council of Energy (DSCE) serving as the competent authority for petroleum product trading.

This guide explains the practical setup route, approvals, and costs you should plan for in 2026.

First, Be Specific About What You Will Trade

“Petroleum trading” can describe several very different businesses. Dubai's rules cover products such as:

• Diesel

• Gasoline

• Kerosene

• Fuel oil

• Bitumen

• Base oils

• Lubricating oils

• Engine oils and greases

• Liquefied petroleum gas (LPG)

• Jet fuel

• Biofuels

The rules also treat importing, storage, transportation, marketing, distribution, buying and selling as petroleum-product dealing.

One detail is easy to miss. Crude oil is excluded from the “Petroleum Products” definition under Dubai Resolution No. 85 of 2025 and the federal petroleum-products framework. If your plan involves crude oil instead of refined petroleum products, the regulatory route is different. Confirm the exact activity before forming the company.

Mainland or Free Zone?

You can consider a Dubai mainland company or an appropriate free-zone structure. Your choice should follow how the business will actually operate.

A mainland setup may make sense when you plan to supply customers directly in Dubai or elsewhere in the UAE. If imports, warehousing and re-export form a large part of your model, you can also assess options covered in Nexture's JAFZA company setup guide. Commodity-focused businesses may want to examine the DMCC company setup route as well. The exact petroleum activity should be cleared before incorporation.

Do not assume a Dubai free-zone company escapes petroleum regulation. Resolution No. 85 of 2025 expressly applies to petroleum-product activities in Dubai's free zones and special development zones unless a specific exemption applies.

Licences and Approvals You May Need

1. Commercial Licence With the Correct Activity

   Your company needs the appropriate economic activity through the relevant Dubai licensing authority or free zone.

   The licence wording should match your actual operation. Lubricants trading, fuel trading, petroleum-product import and petroleum distribution can involve different requirements. A general trading licence should not be treated as automatic permission to deal in regulated petroleum products.

2. Dubai Supreme Council of Energy Permit

   This is one of the most important sector approvals. Dubai law states that a business cannot conduct regulated petroleum-product activity in the emirate unless it has the required commercial licence and the relevant SCE permit.

   Current permit categories include:

   • Import

   • Distribution

   • Transport within Dubai

   • Sale and purchase

   • Manufacturing

   • Marketing

   • Storage

   • Transport between emirates

   A business that simply buys and sells approved lubricants has a different approval profile from a diesel importer operating tanks and delivery vehicles.

3. MOEI Petroleum Products Trading Register

   Licensed petroleum traders must also be registered in the Ministry of Energy and Infrastructure Petroleum Products Trading Register.

   MOEI currently lists a one-time AED 500 registration fee. Required documents include the petroleum trading licence, preliminary licensing approval, an environmental permit and identification documents for the licence holder and partners.

4. Environmental and Fire-Safety Approvals

   If you will store, fill, manufacture or physically handle fuel, expect additional site and safety requirements.

   The MOEI register itself requires an environmental permit from the competent authority. Storage tanks, depots, tanker operations and similar facilities can bring further technical and fire-safety approvals into the process.

5. Dubai Customs Registration

   If your petroleum trading company will import or export through Dubai, register with Dubai Customs for business registration and a customs code.

   Dubai Customs currently lists AED 100 for new business registration. Imports must also comply with the relevant product, safety and hazardous-material controls.

Step-by-Step Process to Start a Petroleum Trading Company in Dubai

1. Define the Product and Supply Chain

   Write down exactly what you will trade, where it comes from, where it will be stored and who will receive it.

   Decide whether you will own storage tanks and vehicles or contract these functions to approved operators. Supplier selection also matters. Dubai's rules require regulated petroleum products to come from identified, SCE-approved sources and meet the required standards.

2. Choose Your Jurisdiction

   Compare mainland and suitable free-zone options based on:

   • Customer location

   • Import route

   • Storage requirements

   • Office requirements

   • Local distribution

   • Corporate tax position

   Do not select a jurisdiction purely because its initial licence fee is lower.

3. Obtain Initial Licensing Approval

   Reserve your trade name, choose the legal structure and apply for the relevant commercial activity.

   The exact order of commercial licensing and external approvals can vary depending on the product, facility and licensing authority.

4. Apply for the Required DSCE Permits

   Apply for the activities your company will actually perform.

   For example, importing diesel and then storing and distributing it requires a broader permit package than carrying out a sale-and-purchase activity alone.

5. Arrange Compliant Premises

   Secure the office, warehouse, depot or approved operating facility. Complete the required environmental, safety and technical approvals before beginning physical operations.

6. Complete Licensing and MOEI Registration

   Complete the commercial licence and register the business in the federal Petroleum Products Trading Register through the procedure currently accepted by MOEI.

7. Complete Customs and Banking

   Importers and exporters should obtain their customs registration.

   You will also need a corporate bank account. Petroleum and commodity trading can receive close compliance review, so prepare supplier agreements, customer information, expected turnover, source-of-funds documents and a clear explanation of trade flows.

   Nexture's guide to UAE business bank account requirements covers the standard banking documents in more detail.

Documents Commonly Required

Your exact document list depends on the product and operating structure, but you should normally prepare:

• Passport copies of shareholders and manager

• Emirates ID and visa copies where applicable

• Trade name and initial-approval documents

• Business plan

• Detailed product list

• Supplier and product-source information

• Product specifications where requested

• Lease or facility documents

• Environmental permit where applicable

• Storage or tanker documents where applicable

• Corporate shareholder documents

• UBO information

• Source-of-funds evidence

• Relevant supply or customer contracts

Regulators and banks can request additional information because petroleum is a controlled and safety-sensitive sector.

How Much Does a Petroleum Trading Company Cost in Dubai?

There is no reliable single “petroleum trading licence cost.” Your total depends on the product, jurisdiction, number of permitted activities, office, storage and transport arrangements.

Some current government charges are published clearly:

• MOEI Petroleum Products Trading Register: AED 500 one-time

• Dubai Customs business registration: AED 100

• Diesel import permit: AED 10,000

• Diesel distribution, transport, storage or sale: AED 2,000 per activity

• Bitumen, fuel oil or kerosene import permit: AED 10,000

• Base-oil import permit: AED 10,000

• Industrial petroleum-derivative import permit: AED 10,000

• Gasoline wholesale permit: AED 4,000

• Inter-emirate petroleum transport: AED 2,000 per transport contract

These are regulatory fees, not your complete company setup cost. The official Dubai fee schedule confirms that different products and activities attract different permit charges.

You also need to budget for company formation, licence issuance, office or warehouse rent, safety approvals, visas, insurance and any vehicles or storage infrastructure.

Conclusion

Starting a petroleum trading company in Dubai is possible, but your setup needs to be built around the exact product and operating model. Your commercial licence is only one part of the process. DSCE permits, MOEI registration, environmental and safety approvals, customs registration and product-specific requirements may all apply before you can trade.

Define your product, supplier, storage arrangement, transport model and target market first. Then build the company around those requirements. Doing this early can save you from signing an unsuitable warehouse lease, buying unusable equipment or importing a shipment before the necessary approvals are in place.

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